Is Buying Always Better Than Renting in Manchester?

Depending on who you ask, renting may not be something that is favourable to you. If you are younger and either your parents or other family members have a mortgage of their own, then it is much more likely that they will encourage you to take out a first time buyer mortgage in Manchester.

Nowadays, however, we tend to see more people renting than ever before. Many seem apprehensive about the prospect of owning their own home. As such, we will take a look at the pros and cons of buying and renting in Manchester.

Pros of Buying a Home in Manchester

Mortgage payments

Quite often, mortgage payments can be cheaper than rent. This is not always the case of course, but it can happen! Payments may fluctuate as interest rates move up and down, leading many to choose specific mortgage types.

One of the most popular is a fixed-rate mortgage, which will keep your monthly mortgage payments the same for the chosen length of time at the start of your mortgage term, providing stability for both yourself and the mortgage lender.

On the other side of the coin, when looking at rent, your payments will either stay the same or eventually go up. A landlord likely has their own mortgage and they are in the business of making money.

Security

Many homeowners feel that their homeownership gives them and their family a sense of stability. So long as you are able to afford your mortgage payments, you cannot be removed from your home if you do not wish to leave. The same cannot be said for tenants.

Whilst there may be some protection for those who are renting, if the landlord wants their property back you do not really have much of a say. Sometimes you may find the landlord will give you the chance to buy before it goes on the market, which can save them time and money.

Pros of Renting a Home in Manchester

Flexibility 

Renting tends to be a more flexible option than being a homeowner could offer. An example of this would be if you found a job in a new area, you are free to give notice to your landlord or estate agent, and then move home.

Although it would be nice if it were that simple, it doesn’t quite work like that if you are a homeowner. You need to determine whether or not you want to sell the property. Some may even let it out and become a landlord themselves.

If you like to move home quite frequently or are not sure how long you will be around the area, buying may not be the most suitable option for you. Home buying requires long term stability, it is more an investment than anything else.

Repairs 

A landlord will be responsible for any repairs that are needed on the property that the tenant is renting. When it comes to these repairs, some landlords will be better than others, so be prepared to maybe fix some minor repairs yourself.

Homeowners will have complete responsibility for their own repairs and usually the conditions of a mortgage will require that you insure your property as well, which is an extra cost to factor in.

Despite being seen so highly by some, owning your own home will not be something that everyone wants to do. If you are a young couple, there’s no shame in renting together to see what being around each other on a more regular basis would do for you.

It may not go the way you would like it to and unfortunately, if things do not go well, it can be incredibly difficult to remove a name from a mortgage once you are both tied into something contractually. With renting, it will be a little easier.

Home buying is a huge financial commitment and definitely not something to rush into, however, if you are renting a property you may find it much more difficult to save up for a deposit. In the end, most people decide to buy over renting, though it all depends on the person.

Mortgage payments benefit you, unlike renting which puts money in the pockets of someone else. As such, most prefer to do something for themselves. Timing is key, so always make sure you’re in a strong and stable financial state before you look to buy.

Expert Mortgage Advice in Manchester

The property market is unpredictable and always changing, so at any point in time a property boom could happen. Alternatively, the opposite could happen too. If you were to purchase a property and it suddenly went down in value, you could understandably be quite disappointed.

Over the years we have seen this happen to a lot of different people. That being said, history has shown that even if this does happen, the value may eventually rise again if you’re patient enough. This of course will depend on whether or not you can afford to keep the property in the meantime.

A good example of this is looking at what properties sold for during the era of the Credit Crunch. Arguably one of the worst economic times of our lives, yet years later, property prices were higher again and the market was booming!

You may also be in a position where you potentially lose money if you, for reasons such as a relationship breakdown or a reduction in your income, have to sell your home at a time where the property market might be underperforming.

Before you commit to purchasing a property, it is worth getting in touch for mortgage advice in Manchester ahead of your first time buyer mortgage in Manchester. We will be able to look at how you can protect yourself from circumstances that could affect your ability to repay your mortgage.

At the end of the day, this is not just an investment, this is your home. The most important thing here is finding something that matches up to your circumstances.


Last edited 14/09/2022

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